NZD/USD: Downside

Overview:
NZD/USD is consolidating with bearish bias after hitting two-week low of 0.8421 on Tuesday. The rate is undermined by contagion from weak Aussie; softer commodity prices. But NZD/USD losses tempered by NZD-USD yield gap; positive global risk sentiment. The Kiwi is vulnerable to China April trade balance data. Daily chart is negative-biased as MACD and stochastics have turned bearish.

Trading recommendations: 
The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.8359 in view, breach of this target will move further the pair downward and you should expect the second target at 0.8323. Pivot point stands at 0.843. In case the price moves in opposite direction and returns from its support and moves above its pivot point then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 0.847 and the second target at 0.8523.  

Support levels:
S1 – 0.8359 (April 23 low)
S2 – 0.8323 (March 25 low)
S3 – 0.8281 (200-day moving average)

Resistance levels:
R1 – 0.847
R2 – 0.8523 (Tuesday’s high)
R3 – 0.8556 (Monday’s high)

The material has been provided by InstaForex Company – www.instaforex.com